AMZN Relative Valuation
AMZN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, AMZN is overvalued; if below, it's undervalued.
Historical Valuation
Amazon.com Inc (AMZN) is now in the Fair zone, suggesting that its current forward PS ratio of 3.14 is considered Fairly compared with the five-year average of -18.20. The fair price of Amazon.com Inc (AMZN) is between 163.73 to 228.14 according to relative valuation methord.
Relative Value
Fair Zone
163.73-228.14
Current Price：226.50
Fair
30.44
PE
1Y
3Y
5Y
12.74
EV/EBITDA
Amazon.com Inc. (AMZN) has a current EV/EBITDA of 12.74. The 5-year average EV/EBITDA is 16.14. The thresholds are as follows: Strongly Undervalued below 7.67, Undervalued between 7.67 and 11.90, Fairly Valued between 20.37 and 11.90, Overvalued between 20.37 and 24.61, and Strongly Overvalued above 24.61. The current Forward EV/EBITDA of 12.74 falls within the Historic Trend Line -Fairly Valued range.
26.13
EV/EBIT
Amazon.com Inc. (AMZN) has a current EV/EBIT of 26.13. The 5-year average EV/EBIT is 48.64. The thresholds are as follows: Strongly Undervalued below -2.59, Undervalued between -2.59 and 23.03, Fairly Valued between 74.25 and 23.03, Overvalued between 74.25 and 99.86, and Strongly Overvalued above 99.86. The current Forward EV/EBIT of 26.13 falls within the Historic Trend Line -Fairly Valued range.
3.14
PS
Amazon.com Inc. (AMZN) has a current PS of 3.14. The 5-year average PS is 2.79. The thresholds are as follows: Strongly Undervalued below 1.68, Undervalued between 1.68 and 2.23, Fairly Valued between 3.35 and 2.23, Overvalued between 3.35 and 3.91, and Strongly Overvalued above 3.91. The current Forward PS of 3.14 falls within the Historic Trend Line -Fairly Valued range.
14.23
P/OCF
Amazon.com Inc. (AMZN) has a current P/OCF of 14.23. The 5-year average P/OCF is 16.72. The thresholds are as follows: Strongly Undervalued below 6.78, Undervalued between 6.78 and 11.75, Fairly Valued between 21.69 and 11.75, Overvalued between 21.69 and 26.66, and Strongly Overvalued above 26.66. The current Forward P/OCF of 14.23 falls within the Historic Trend Line -Fairly Valued range.
83.47
P/FCF
Amazon.com Inc. (AMZN) has a current P/FCF of 83.47. The 5-year average P/FCF is 40.03. The thresholds are as follows: Strongly Undervalued below -36.99, Undervalued between -36.99 and 1.52, Fairly Valued between 78.54 and 1.52, Overvalued between 78.54 and 117.05, and Strongly Overvalued above 117.05. The current Forward P/FCF of 83.47 falls within the Overvalued range.
Amazon.com Inc (AMZN) has a current Price-to-Book (P/B) ratio of 6.55. Compared to its 3-year average P/B ratio of 7.81 , the current P/B ratio is approximately -16.11% higher. Relative to its 5-year average P/B ratio of 9.72, the current P/B ratio is about -32.64% higher. Amazon.com Inc (AMZN) has a Forward Free Cash Flow (FCF) yield of approximately 0.44%. Compared to its 3-year average FCF yield of 0.98%, the current FCF yield is approximately -55.65% lower. Relative to its 5-year average FCF yield of 0.34% , the current FCF yield is about 28.82% lower.
6.55
P/B
Median3y
7.81
Median5y
9.72
0.44
FCF Yield
Median3y
0.98
Median5y
0.34
Competitors Valuation Multiple
The average P/S ratio for AMZN's competitors is 2.09, providing a benchmark for relative valuation. Amazon.com Inc Corp (AMZN) exhibits a P/S ratio of 3.14, which is 49.89% above the industry average. Given its robust revenue growth of 13.40%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of AMZN decreased by 1.94% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.65 to 11.76.
The secondary factor is the Revenue Growth, contributed 13.40%to the performance.
Overall, the performance of AMZN in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Amazon.com Inc (AMZN) currently overvalued or undervalued?
Amazon.com Inc (AMZN) is now in the Fair zone, suggesting that its current forward PS ratio of 3.14 is considered Fairly compared with the five-year average of -18.20. The fair price of Amazon.com Inc (AMZN) is between 163.73 to 228.14 according to relative valuation methord.
What is Amazon.com Inc (AMZN) fair value?
AMZN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Amazon.com Inc (AMZN) is between 163.73 to 228.14 according to relative valuation methord.
How does AMZN's valuation metrics compare to the industry average?
The average P/S ratio for AMZN's competitors is 2.09, providing a benchmark for relative valuation. Amazon.com Inc Corp (AMZN) exhibits a P/S ratio of 3.14, which is 49.89% above the industry average. Given its robust revenue growth of 13.40%, this premium appears unsustainable.
What is the current P/B ratio for Amazon.com Inc (AMZN) as of Jan 06 2026?
As of Jan 06 2026, Amazon.com Inc (AMZN) has a P/B ratio of 6.55. This indicates that the market values AMZN at 6.55 times its book value.
What is the current FCF Yield for Amazon.com Inc (AMZN) as of Jan 06 2026?
As of Jan 06 2026, Amazon.com Inc (AMZN) has a FCF Yield of 0.44%. This means that for every dollar of Amazon.com Inc’s market capitalization, the company generates 0.44 cents in free cash flow.
What is the current Forward P/E ratio for Amazon.com Inc (AMZN) as of Jan 06 2026?
As of Jan 06 2026, Amazon.com Inc (AMZN) has a Forward P/E ratio of 30.44. This means the market is willing to pay $30.44 for every dollar of Amazon.com Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Amazon.com Inc (AMZN) as of Jan 06 2026?
As of Jan 06 2026, Amazon.com Inc (AMZN) has a Forward P/S ratio of 3.14. This means the market is valuing AMZN at $3.14 for every dollar of expected revenue over the next 12 months.